MRPL sale to ONGC needs Cabinet okay

HPCL has, in principle, agreed to sell its entire stake of around 17 per cent in MRPL to ONGC, whose stake in MRPL, subsequent to the deal, will increase to around 88 per cent.

Government sources said since the earlier deals in MRPL - such as when ONGC bought AV Birla group's shareholding in MRPL "" had been ratified by the union cabinet, it is essential that all other deals, especially between two public sector undertakings, also be routed through the Cabinet.

The petroleum ministry will now prepare a Cabinet note in this regard, which will be put up for consideration at an appropriate time.

While HPCL was hesitant in selling its MRPL shares, ONGC upped the ante saying that HPCL's impending divestment may provide the private player acquiring it getting a strategic control in MRPL.